02536cam a22002777 4500001000700000003000500007005001700012008004100029100002200070245012200092260006600214490004200280500002000322520125200342530006101594538007201655538003601727690007801763690009801841690010101939700002402040710004202064830007702106856003802183856003702221w17466NBER20150802194750.0150802s2011 mau||||fs|||| 000 0 eng d1 aFelix, R. Alison.10aWho Offers Tax-Based Business Development Incentives?h[electronic resource] /cR. Alison Felix, James R. Hines, Jr.. aCambridge, Mass.bNational Bureau of Economic Researchc2011.1 aNBER working paper seriesvno. w17466 aSeptember 2011.3 aMany American communities seek to attract or retain businesses with tax abatements, tax credits, or tax increment financing of infrastructure projects (TIFs). The evidence for 1999 indicates that communities are most likely to offer one or more of these business development incentives if their residents have low incomes, if they are located close to state borders, and if their states have troubled political cultures. Ten percent greater median household income is associated with a 3.2 percent lower probability of offering incentives; ten percent greater distance from a state border is associated with a 1.0 percent lower probability of offering incentives; and a 10 percent higher rate at which government officials are convicted of federal corruption crimes is associated with a 1.2 percent greater probability of offering business incentives. TIFs are the preferred incentive of communities whose residents have household incomes between $25,000 and $75,000; whereas TIFs are much less commonly offered by communities whose residents have household incomes below $25,000. The need to finance TIFs out of incremental tax revenues may make it infeasible for many of the poorest of communities to use TIFs for local business development. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web. 7aH25 - Business Taxes and Subsidies2Journal of Economic Literature class. 7aH71 - State and Local Taxation, Subsidies, and Revenue2Journal of Economic Literature class. 7aH73 - Interjurisdictional Differentials and Their Effects2Journal of Economic Literature class.1 aHines, James R, Jr.2 aNational Bureau of Economic Research. 0aWorking Paper Series (National Bureau of Economic Research)vno. w17466.4 uhttp://www.nber.org/papers/w1746641uhttp://dx.doi.org/10.3386/w17466